Back to Work: New Zealand

Improving the Re-employment Prospects of Displaced Workers

Job displacement (involuntary job loss due to firm closure or downsizing) affects
many workers over their lifetime. Displaced workers may face long periods of unemployment
and, even when they find new jobs, tend to be paid less and have fewer benefits than
in their prior jobs. Helping them get back into good jobs quickly should be a key
goal of labour market policy. This report is part of a series of reports looking at
how this challenge is being tackled in a number of OECD countries. It shows that in
New Zealand most displaced workers find a new job again, largely due to a strong economy
and a highly flexible labour market. But many of them face large losses in terms of
job quality and especially wages. And displaced workers facing difficulties in New
Zealand are largely left on their own to find a new job, as the means-tested public
benefit system only provides for people in need and employment services concentrate
on helping people off benefit with limited focus on those not receiving a benefit.

Nine countries are participating in the review: Australia, Canada, Denmark, Finland,
Japan,
Korea, New Zealand, Sweden and the United States.

Contents
Chapter 1. Job displacement in New Zealand and its consequences
Chapter 2 Easing the impact of economic restructuring on displaced workers in New
Zealand
Chapter 3 Re-employment support for displaced workers in New Zealand who struggle
to find a new job